Damage claims bill tops $43m

THOUSANDS of insurance claims have been lodged in the aftermath of floods in Queensland and New South Wales as insurers brace for tens of millions of dollars in damage.

As flooding peaks, insurance companies insist the latest losses are unlikely to trigger a fresh round of premium increases.

One of Australia's biggest insurers, Suncorp, said it was preparing to release updated claims figures on Tuesday after receiving higher-than-average claim volumes over the weekend.

Insurance claims from the latest Queensland floods have already topped $43 million, as river levels continue to rise in large parts of the state.

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As early as Monday afternoon, about 5050 claims had been lodged relating to losses from the major rain event now affecting Queensland and NSW, said Campbell Fuller, general manager for communications at the Insurance Council of Australia.

The total claimed losses are likely to reach $50 million by midweek, he said, adding that flood waters were yet to peak at Ipswich and that much of Bundaberg was inundated.

While recent bushfires, including those across Victoria, have triggered tens of millions in payouts in recent weeks, flooding usually represents a bigger cost to insurers. Payouts for Tasmania's bushfires have so far hit $76 million.

Heavy rain is also falling over much of NSW as the remnants of former tropical cyclone Oswald move south.

The council yesterday declared a catastrophe for large parts of Queensland affected by storms and inundation. The declaration means insurers have set up a taskforce to co-ordinate their response to recovery efforts.

The floods are the third catastrophe declared so far this year following severe bushfires in south-eastern Tasmania and northern NSW. The council has declared six catastrophes in Queensland for flooding and cyclone damage since 2010, with losses reaching almost $4 billion.

The flooding across Queensland over the summer of 2011 cost $2.4 billion in insurance losses. In contrast, the Black Saturday bushfires that swept Victoria in 2009 triggered $1.1 billion in insurance payouts.

Insurers and re-insurers have singled out water - either too much or too little of it - as the main risk from extreme weather in Australia.

The council, in particular, has been calling for increased spending on efforts to limit the damage from flooding, such as the construction of flood levees around flood-prone towns.